My G'G' Generation

Economies and social norms go through cycles. Over generations peoples views change and are moulded by the things going on around them and the values and mood of the day.

If you look at fiscal responsibility and being savvy with money we need to look at a timeline to get an idea of what I am getting at and why there is hope for the current generation.

The generation that grew up during the Great Depression of the 1930s (I added the date because I know of a 17 year old who has no idea when it was and I know he is not alone) and learnt lessons during dark economic times which positively shaped their attitude to life and finances; they lived within a budget, were entrepreneurial, saved money and propelled the global economy from the 1950s to the early 1970s like no time before in modern history.

Skip forward to the generation my parents grew up in, the baby boomer generation, and by sheer numbers alone they swept everything up before them. They seemed to have learnt little from their struggling parents who brought the boomer generation up in the unprecedented good times and proceeded in the 1970s - till now really because of their sheer numbers, to go on an orgy of drugs, sex, debt, share buying, house buying and then more house buying all on an orgy of credit (and took some of my generation along with them) and it is clear that the economy has suffered (in the 1990s and now) as a result of their carelessness with money, failure to live within their means and their arrogance of numbers.

My generation, generation X, who grew up in the 1980s and 90s are a bit confused when it comes to finances. We got the crumbs from the table of the boomers so some of us learnt early on that we must forge out on our own because "nobody owes us a living" and we just have to do it ourselves. Parallel to that though, we also had some of my generation that thought people like me owed them a living and decided to drop out of the competitive environment, seek welfare and stay on it and bleed the economy dry. Those tough times at home and abroad really shaped me and others as entrepreneurs and savers and will lead to a more sound, rational and sustainable economy - at least for the medium term - during our time at the head of the table. Forget about the other part of my generation, we will deal with them at some other stage...nah, lets just cut the mothers off!

I have much more hope for the generations that were born in the 1980s to early 2000s though and my baby who is two years old (I am a late starter - see above re boomers) .They are growing up in economic times that are second only to the Great Depression and lessons learnt from some of my generation and what they are experiencing now will shape these kids into the same sorts of people that were born out of the 1930s. Highly independent, fiercely entrepreneurial and able to live within a budget.

It is looking good for the future.

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c Share Investor 2011

Bargaining through life to save a buck

I wonder how you manage your financial affairs?

How are your investments going and what approach do you have in your own personal financial situation?





Let me share with you some of the things that I do to make or save a buck. Most of them are elementary and you probably do them anyway but hey its my blog and Ill rant if I want to.

My employment gives me a very good income but that is no excuse to waste your valuable shekels because your make more money than others, a penny saved is a penny earned and all that.

I know people who earn way more than I but they seem to think that it is their mission in life to waste their money, simply because they can afford to. Either they have been wealthy all their lives or if self made, have forgotten how hard it was to get where they now are. Comfortable.

While I'm not stingy with what i earn I certainly haven't forgotten my humble beginnings.

That translates into menial stuff like not always buying the expensive brands at the supermarket, using all the peanut butter from the bottom of that Jar Mr and turning the lights off when one leaves a room. Boring I know but its money that you don't have to find elsewhere.

If you are in the market for a new car consider either buying a 1 year old version, where the depreciation has taken off a third of the cost and you still have a warranty and the vehicle has been run in or consider putting off the purchase altogether.

It is best buying an almost new vehicle but when you do you need to hold onto it for around 7 years to get the most economic value from it. After that it is better to ditch it because repairs could cost a mint, unless of course you bought a Ford , in which case you should replace the vehicle annually.

Of course when making major purchases like household goods, cars, boats and houses it doesn't hurt to bargain with the seller, with electronic goods especially, competition is cutthroat and the sticker price isn't the final one, they expect you to haggle, so do it, you might be surprised.

Of course it you are holding lovely folding stuff in your hand, you have an added advantage. Cash is king in most bargaining situations and discounts for green come on top of other bargaining tools.

When it comes to your bank, bargaining works as well. Try and negotiate term investment rates, mortgage rates and their other, often devious charges. It works for me , they can only say no.

Of course when investing in the stockmarket prudent investing there starts with your own research, the more you can do that the more likely you will insulate yourself from the sharks that swim in this pool.

Remember, your money is usually hard to earn in the first place and clearly prudent saving, through wise choices and bargaining your way through your financial life, will put you in good stead for a healthy financial future.

It will also allow you to spurge every once and a while, a natural antidote to my otherwise miserly approach to the art of living financially constrained!

C Share Investor 2007